Description

3Q14 Tech M&A and IPO Analysis Report

This IDC study provides an overview and analysis of M&A deals in 3Q14 across all major sectors of the information and communication technology industry, including enterprise IT infrastructure, telecommunications, enterprise applications, IT services, semiconductors and components, digital media, and other sectors. It also discusses the different business, financial, and technology trends affecting M&A activities in the ICT industry.

"The hectic pace of ICT M&A activity continued in the third quarter of 2014, which was the sixth consecutive quarter of increase in deal volume. Although M&A spending was cut from around $150 billion in each of the previous two quarters, the disclosed value of 3Q14 deals was still way higher than the quarterly average in recent years, totaling more than $111.15 billion. At current pace, total deal value is on track to cross the $500 billion mark in 2014, which will make it the strongest year ever in terms of ICT M&A spending. While M&A statistics continue to break every possible record, IPO activity, after showing clear signs of recovery in the past few quarters, has stalled in 3Q14. The ongoing volatility in financial markets and the fact that many companies choose the M&A route over IPO, as major ICT companies and private equity firms continue to put their huge amounts of cash to work, suggest that the IPO market is not likely to boom in the near future." — Dan Yachin, research director, IDC's EMEA Emerging Technologies